Record monthly fall in diesel prices as cost of oil plummets
2 Jul 2026, 08:17 Updated: 12m ago 2 Jul 2026, 08:17 | Updated: 12m ago
The reduction of more than 16p per litre is the largest in records dating back to 2000.
Picture:
Alamy
Diesel prices have fallen by the largest monthly amount in more than a quarter of a century after the cost of oil plummeted as the Iran crisis eased, new figures show. The RAC said the average price of a litre of the fuel at UK forecourts dropped from 183.8p at the start of June to 167.1p by the end of the month.The reduction of more than 16p per litre is the largest in records dating back to 2000.More tankers began passing through the crucial Strait of Hormuz last week after the US-Iran peace deal.This meant the cost of oil, which is a major influence on fuel prices, fell below pre-crisis levels for the first time since the war started on February 28.Read More: US security chief admits he 'danced a happy dance' after Iran crashed out of the World Cup after left American soilRead More: 'Positive progress' in US-Iran talks despite Strait of Hormuz missile strikes
The cost of oil fell below pre-crisis levels for the first time since the war started on February 28.
Picture:
Alamy
The average price of a litre of petrol fell by 8p last month, from 159.4p to 151.4p.RAC head of policy Simon Williams said: “June has been a far better month for drivers on the back of the announcement of a deal between the US and Iran to end the conflict.“The price of oil has fallen dramatically and prices at the pumps have reflected that.”But he noted that the cost of fuel remains “far higher than it was at the start of the war”, with average prices for a litre of petrol and diesel still 19p and 25p respectively more expensive.He added: “As things stand, petrol should dip under 150p soon and diesel ought to get to below 160p, but we would need the price of oil to fall further to see a return to the pre-conflict prices.”
